Solis Tek Inc. (OTCPK:SLTK) executed a letter of intent to acquire YLK Partners NV, LLC (‘YLK') for from LK Ventures, LLC, MDM Cultivation LLC and Future Farm Technologies Inc. for $6.6 million on April 26, 2018. Solis Tek Inc. entered into a merger agreement to acquire YLK Partners NV, LLC from LK Ventures, LLC, MDM Cultivation LLC and Future Farm Technologies Inc. on May 10, 2018. Pursuant to the agreement, Solis Tek will issue 5 million warrants to purchase 5 million common shares, at an exercise price of $0.01 per share. LK Ventures LLC and MDM Cultivation LLC each received 2.25 million warrants under the agreement for their 45% membership interests held in YLK and Future Farm Technologies Inc. received 0.5 million warrants for the 10% membership interests held in YLK.

Concurrent with the transaction, Solis Tek has executed an option agreement for the right to enter into a long-term lease agreement with a local land owner, for the lease, use and occupancy of a more than 70,000 square feet facility (‘Arizona Operation'). Concurrent with the transaction, Future Farm Technologies has agreed to invest $0.5 million for a 10% interest in the Arizona Operation. Yorkville Advisors Global, LP ("Yorkville") and its affiliates, who have provided significant financing support to Future Farm, are also providing the financing to Solis Tek for the Arizona Operation. The transaction subject to execution of execution of definitive agreement, third party approval and government approval. The transaction is expected to close on May 10, 2018.